Pixelworks Announces Details of Common Stock Offering of 3.25 Million
Shares with Gross Proceeds of $15.4 Million

August 07, 2015 07:57 AM Eastern Daylight Time

SAN JOSE, Calif.--(BUSINESS WIRE)--Pixelworks, Inc. (NASDAQ:PXLW), an innovative provider of video display
processing technology enabling the highest quality viewing experience
for displays of all sizes, today announced details of its previously
announced public offering of common stock. Pixelworks has agreed to sell
3,250,000 shares of its common stock at a price of $4.75 per share, and
has granted the underwriter an option to purchase up to 487,500
additional shares of common stock to cover over-allotments, if any.
Subject to the satisfaction of customary conditions, the offering is
expected to close on or about August 12, 2015.

Roth Capital Partners will act as the sole book-running manager and
Dougherty & Company will act as co-manager of the offering.

Pixelworks intends to use the net proceeds from the offering for general
corporate purposes, which may include, among other things, increasing
our working capital, financing of ongoing operating expenses and
overhead, and funding of capital expenditures, such as the continued
development of solutions for the digital projector, digital television,
and mobile device markets. Pending the application of the net proceeds,
Pixelworks may invest the proceeds in marketable securities and
short-term investments.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of, the
common stock in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.

A copy of the prospectus supplement and prospectus relating to these
securities may be obtained, when available, by contacting Roth Capital
Partners, Attention: Equity Capital Markets, 888 San Clemente Drive,
Newport Beach, CA 92660, by telephone at (800) 678-9147, or by accessing
the SEC's website, www.sec.gov.

About Pixelworks, Inc.

Pixelworks creates, develops and markets video display processing
technology for digital video applications that demand the very highest
quality images. At design centers around the world, Pixelworks engineers
constantly push video performance to keep manufacturers of consumer
electronics and professional displays worldwide on the leading edge. The
company is headquartered in San Jose, CA.

Note: Pixelworks and the Pixelworks logo are registered trademarks of
Pixelworks, Inc. All other trademarks are the property of their
respective owners.

Forward-Looking Statement

This release contains forward-looking statements, including, without
limitation, the statements regarding the anticipated offering and
intended use of proceeds, within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended.These statements may be
identified by use of terms such as “begin,” “continue,” “will,”
“believe,” and similar terms or the negative of such terms. All
statements other than statements of historical fact are forward-looking
statements for purposes of this release. Such statements are based on
management's current expectations. These statements are not guarantees
of future performance and involve numerous risks, uncertainties and
assumptions that are difficult to predict. Actual results could vary
materially from those contained in forward looking statements due to
many factors, including, without limitation: our ability to deliver new
products in a timely fashion; our new product yield rates; changes in
estimated product costs; product mix; supply of products from
third-party foundries; failure or difficulty in achieving design wins;
timely customer transition to new product designs; competitive factors,
such as rival chip architectures, introduction or traction by competing
designs, or pricing pressures; risks related to licensing our
intellectual property; the success of our products in expanded markets;
current global economic challenges; levels of inventory at distributors
and customers; changes in the digital display and projection markets;
changes in customer ordering patterns or lead times; seasonality in the
consumer electronics market; our efforts to achieve profitability from
operations; insufficient, excess or obsolete inventory and variations in
inventory valuation; the outcome of any litigation related to our
intellectual property rights; our limited financial resources and our
ability to attract and retain key personnel. More information regarding
potential factors that could affect the Company's financial results and
could cause actual results to differ materially is included from time to
time in the Company's Securities and Exchange Commission filings,
including our Quarterly Report on Form 10-Q for the year ended June 30,
2015 as well as subsequent SEC filings.